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Why AI and SMR development will depend on the right supply chains
Written By Luc Todo
October 9, 2025
There are several reasons why achieving secure, accessible power is a defining challenge in the 21st century. The age and fragility of grid infrastructure, especially in Europe, is one.
The ongoing electrification of society is another. And now, with the advent of artificial intelligence (AI), we have a new technology that has significantly complicated the situation.
This type of technology is known for its high energy penalty, as it requires significantly more electricity to prevent dense server racks from overheating. For now, grids can manage the load, but there will come a time when shortfalls are far more likely.
Given this situation, nuclear experts are increasingly viewing small modular reactors (SMRs) as one potential route forward [i]. They offer a pilotable source of low-carbon, grid-independent power suitable for data centres. The government of the United Kingdom has even directly referenced SMRs when announcing plans for its new AI Energy Council, urging tech firms to accelerate their development. [ii]
AI infrastructure like this is accelerating the need for scalable, low-carbon energy from SMRs.
It's true that speed is needed, if only for the reasons mentioned above. But we’re still some way off a design that can be used immediately. As such, it’s now essential for developers to work with manufacturers like us who have existing knowledge of nuclear engineering and critical services. This is especially true if delivery times, timely qualification, and assurances of public safety remain important issues on the way to full-scale deployment.
Standardisation is supplier-dependent
One of the most pressing challenges in the current SMR market is its relative immaturity. With more than eighty designs in development, each employing different reactor types and cooling methods, the sector is characterised by innovation, but also by fragmentation. While this level of activity is encouraging, it also highlights a critical absence of standardisation that will be vital to making SMRs economically viable.
Rolls-Royce’s CEO Tufan Erginbilgiç, is only too aware of this, having recently pointed out that a standardised design will only be possible with the right suppliers in place, partly because of the time it typically takes for projects of this type to get up and running successfully. [iii] Established companies with a history in the nuclear industry will be essential in this respect. Not only will they be able to eliminate manufacturing bottlenecks, but they will also ensure economies of scale, repeatability, and a quicker time to market, including product qualification.
Download the free slide deck at the bottom of the page to explore how AI and SMRs are driving the future of energy through smarter supply chains.
Answering the regulatory question
Engaging the right suppliers offers advantages that go beyond commercial considerations. It can also significantly ease the challenges posed by the complex regulatory landscape currently surrounding small modular reactors (SMRs).
With many SMR designs under development, the licensing process has become protracted and demanding. This is partly due to regulators having limited familiarity with emerging reactor technologies and manufacturing techniques. While some mature SMRs use established coolants, such as pressurised water, others rely on less conventional options, including liquid metal, helium, or molten salts. Any deviation from approved technologies, in other words, those known to regulatory agencies, will always require rigorous safety and validation ahead of use.
Such caution is justified. Public confidence is crucial to the long-term success of the nuclear sector, particularly as SMRs are often intended for deployment in areas closer to where people live and work. In this regard, the success of nuclear-powered submarines provides a valuable case in point. These vessels operate reactors in close proximity to their crews and have long been a prominent example of nuclear technology’s reliability and safety.
SMRs will help reinforce grid infrastructure as energy demand grows.
Suppose the timeline for SMR deployment is intended to appease investors, regulatory agencies, and the general public. In that case, it makes sense to choose suppliers with a demonstrable track record of success in this area. This will accelerate delivery and signal that the relevant expertise is being exploited at every level.
What’s known to succeed
Given the lengthy regulatory process that applies to even advanced technology projects, it makes sense to prioritise proven solutions. Doing so helps validate the SMR concept and provides a reliable way to power new industries, such as AI, without risking a shortfall.
Valves provide a good example of this. Though small within an overall build, they are essential for keeping SMRs within safe operating limits. We are advancing this space by supporting the design and application of critical components, such as safety relief valves, isolation valves, control valves, turbine bypass valves, and emergency core cooling system strainers.
These products have already been qualified and approved for large-scale reactors. While not directly transferable to SMRs, they bring thousands of hours of proven performance in critical service, easing regulatory concerns around bespoke parts. This is especially relevant to the SMR’s passive safety systems, which lower the operational threshold for newer players.
That said, no part can bypass the rigorous testing that defines nuclear safety. Every component must meet the same high standards. Still, if speed and simplicity are key to SMR adoption, working with companies experienced in flow control for critical service makes sense. It’s just one piece of a complex puzzle, but a vital one for making ambitious plans, such as those from the UK government, a reality.
Luc Todo is IMI's President of Global Strategic Projects in Nuclear Energy. For more information, visit: Nuclear Power
